#9 - Backdoor Roth IRA: What is a backdoor Roth contribution? Is it Ethical and Legal? What are ther implications and why might someone want to do one?

The Fiscal Physical Podcast

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Unlock the full potential of your financial future as wealth management expert Ryan Nelson guides us through the intricacies of Roth IRAs. In a conversation brimming with strategic advice, we examine how to maximize your retirement contributions by hitting the 2024 cap of $7,000 and delve into the critical impact that missing a single year's investment can have on your long-term savings. Our dialogue with Ryan, a sage in the realm of wealth management and an accomplished author, brings to light the necessity of consistent contributions and strategic planning based on individual income levels, especially with regard to the Roth IRA phase-out limit.
The episode further illuminates the backdoor Roth IRA—a beacon for high earners navigating the often-murky waters of IRA contributions. We discuss the nuances of this IRS-approved strategy that allows individuals to contribute to a traditional IRA without immediate tax breaks and then convert to a Roth IRA for its coveted tax-free benefits. I dissect the process, legality, and common pitfalls, emphasizing the importance of staying informed and seeking professional financial guidance. This is more than just an informative session; it's a roadmap to securing your financial wellbeing throughout retirement.

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Chapters

1. Limitations and Benefits of Roth IRAs (00:00:01)

2. Backdoor Roth IRA (00:09:24)